Insider (2016) by RV Raman

Author:RV Raman [Raman, RV]
Language: eng
Format: epub
Publisher: Hachette India
Published: 2016-05-15T00:00:00+00:00

Chapter 17

The moment Shashi began checking his mail the next morning, his attention was arrested by a mail from Amit; its subject line said: ‘Personal’. Experience had taught him that such mails were often about employee issues such as resignations. The mail was addressed to Gupta as well. Shashi opened it and began reading:

Dear Mr Gupta, Shashi,

I understand that the board’s subcommittee is planning to initiate a forensic audit into the company’s accounts. This decision, I am told by Mr Sudakar, is based on rumours circulating about falsified accounts.

As you know, a forensic audit is a rare event that immediately calls into question the integrity of the company’s accounts. It is seen as a poor reflection on the company’s CFO. From my perspective, I have found nothing to suggest that our accounts are incorrect and would appreciate a clearer explanation for our considering such a measure. In my view, it would be prudent for the board to consider if there is, indeed, cause for such a drastic step. However, I do recognize that this is the board’s prerogative.

If, in its wider wisdom, the board does go ahead with a forensic audit, my position would become untenable.

Best regards,

Amit

Shashi read the email twice before calling Amit.

‘Your mail is clear enough, Amit,’ he began. ‘Did you speak to the chairman about Sudakar’s plan?’

‘He was non-committal and promised to look into the matter. I heard nothing from him all of yesterday. I slept over it last night and decided that I couldn’t possibly continue if the board does go ahead with the forensic audit.’

‘Rather drastic, isn’t it, Amit?’

‘What would you do in my place, Shashi?’

He was right. Shashi would have done exactly the same thing. In the two years they had worked together, Amit’s performance had been exemplary – not just as an accountant, but also as a finance person. Not only had he been instrumental in driving down the cost of borrowing, but was also the primary reason behind Purple Country acquiring Serenity at such a favourable price. Amit was a top-drawer CFO, someone Purple Country was lucky to have.

‘Rest assured that the forensic audit will find nothing amiss,’ Amit continued. ‘Nothing. However, it will tarnish my reputation. My only defence would be to resign in protest and make public the reason for my resignation. I will, of course, wait till the audit is completed before I act. There is only so much one can take from an idiot of a director.’

Again, Amit was right. Why on earth was Sudakar behaving so recklessly? He was certainly smart enough to know that calling for a forensic audit now would cause the company much grief. Gupta’s reassurances on TV had slowed the fall of the share price, but hadn’t halted it altogether. It had fallen another 10 per cent on the fourth day, taking the cumulative fall in four days to 48 per cent.

Was Sudakar acting on his own? Or was someone else behind this? Was a rival using the independent director to damage Purple Country’s image? Sudakar had broken all norms of directorial conduct.

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